Your Financial Wealth
These are the Financial Freedom Basics that have worked for me and how I apply them. This is the first of my four pillars not because this subject is of any more importance than the other three pillars, health, mental and spiritual, only because F comes first in the alphabit.
With the use of multiple sources of passive income, your nest egg or Golden Goose will continue to grow and provide security and the freedom for you to enjoy your life as you have only dreamed.
When I read this book on being financially free "Think and Grow Rich" written by Napoleon Hill I began to use and apply the concepts he teachs in my life. He wrote
“Whatever the mind of a man can conceive and believe, it can achieve.”
Napoleon Hill
I believed him, took this to heart and applied it, just imagine, all you have to do is believe and you will get what ever you want.
Well I soon learned that it is not quite that simple, maybe Napoleon Hill could of added "With a Lot of Hard Work and Perserverance" (actually he does go in to this in more detail) later.
With a few friends we started a "Master Mind Group" we met once a week to study the principles in this book. I think this is the best book on creating wealth that I have ever read.
Another great book is "The Richest Man in Babylon" written by George S. Clason. In this short book the author tells a very interesting and amusing story on how ArKad became the richest man in his time by just saving 10% of what he earned and invested it. Pay your self first before you pay any one else.
With the 10%(minimum) that you pay to your self, invest this money into sources of passive income that will continue to earn you money while you are at work, while you sleep, while you eat or even while you are relaxing. The compounding effect of this principle simply amazes me, after a while it really begins to grow.
Christmas Holidays 2007
How you invest your money will be determined by your risk level. I believe that you should have some money invested in very safe investments like bonds, guaranteed investment certificates, gold, silver and a little more risky like stocks and real estate. I invest my FFA "Financial Freedom Account" into multiple sources of passive income, some investments pay 20% interest, while others pay only 5%. Some of my real estate and stocks have averaged well over 100% return per year and a few have lost money. Watch this interesting short movie called "Learn How The Wealthy Get That Way"
For me the main thing I take into account is that this money is fairly safe and it is earning sources of passive income. This is not to say that I have not ever lost some of the money that I have invested, but the amounts were small and the rewards would have been high. I try to follow Warren Buffett's two rules of investing.
"Rule No. 1: Never lose money."
"Rule No. 2: Never forget rule No. 1."
Warren Buffett
The good investments have more than paid for the very few bad investments that I have had. My investments have actually become more conservative and my over all returns have become better.
These two books "Classics" have taught me the most concerning wealth creation I use to build my FFA account. I have read many, many books, taken different coarses, they are all good, each have a few different ideas and/or explain things a little bit different.
In the following pages and in my Key2Wealth Blog I will explain further some of the different ideas and concepts that have worked for me. If you see any thing that looks like it may work for you be my guest to use it.
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